Is the Stock Market Just a Side Show? Evidence from a Structural Reform

We thank Warren Bailey, Dan Bernhardt, Diana Bon...m, Maurice Bun, Zhiwu Chen, Effi Benmelech, Joan Farre-Mensa, Erasmo Giambona, Michael Gofman, Itay Goldstein, Qiao Liu, John Matsusaka, David Ng, Nicolas Serano-Velarde, Yongxiang Wang, Wei Xiong, and Hong Zou for their useful discussions and suggestions. We also benefited from comments from seminar participants at Boston College, Cambridge University, Columbia University, Central Bank of Portugal, Chinese University of Hong Kong, City University of London, European Central Bank, Emory University, University of Amsterdam/DSF, University of Illinois, University of Luxembourg/LSF, University of North Carolina, University of Pittsburgh, University of Southern California, University of Wisconsin, and Yale University. Comments from conference participants at WFA (2011) and FIRS (2011) were also very helpful. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.